Vilas Transcore Ltd Q2 FY26 | 41% Revenue Growth, CFO Musical Chairs, and Transformers Getting Hotter Than Midday Vadodara Heat

1.At a Glance

Baroda’s own transformer-core kingpin,Vilas Transcore Ltd (VTL), has pulled off a shocker this quarter —Revenue jumped 41% YoY to ₹229 crore, whilePAT grew a sizzling 74% to ₹24.4 crore. The stock, however, seems to be undergoing a power cut of its own — down~18% in three monthsand~9% in a year, chilling at₹428per share, far below its 52-week high of ₹674.

With amarket cap of ₹1,047 crore, aP/E of 23.3x, and anROCE of 21.9%, this Vadodara-based SME-listed company looks like the quiet overachiever your cousin ignores until it drives past in a brand-new Fortuner.

Itsoperating margin has juiced up to 14%, thanks to efficient cost control and scale effects, even as the company plays musical chairs with CFOs like it’s the new IPL draft. The expansion to36,000 MTPAis done and dusted, the newcopper capex of ₹25–30 croreis plugged in, and the next-gen products—radiators and nanocrystalline cores—are ready to light up the grid.

The only shock?No dividend. Maybe they’re saving the juice for the next megawatt of growth.

2.Introduction

Vilas Transcore is what happens when Gujarat’s obsession with engineering meets India’s growing appetite for reliable electricity. Born in 2006 and forged in Baroda’s industrial fire, the company makestransformer cores, laminations, and critical componentsthat keep India’s power infrastructure humming.

Think of them as the silent “core” of your transformer—literally. No flashy ads, no celebrity brand ambassadors, just steel, sweat, and strong margins.

In FY24, the company pulled off a34% sales growthand a74% profit growth, which in Indian SME land is like watching your neighborhood chaiwala turn into a chain. Withdebt of just ₹10.7 croreand acurrent ratio of 4.7, Vilas Transcore runs a cleaner balance sheet than most politicians’ election affidavits.

Yet, the stock’s journey has been volatile. After theJune 2024 IPO worth ₹95 crore, investors who expected an instant power surge are now realizing—transformers don’t work overnight; they heat up slowly. But when they do, they light entire grids.

So what exactly does Vilas Transcore do, and is it just another “metal bender,” or a quietly humming profit machine powering India’s energy backbone?

3.Business Model – WTF Do They Even Do?

Vilas Transcore manufactures and supplies components that are basically the nervous system of India’s transformers and power generators. Without theirCRGO coils, wound cores, and core assemblies, your state electricity board would be as clueless as an intern on day one.

Here’s the breakdown:

• CRGO Mother & Slitted Coils:Think of these as the premium-grade steel used to make transformer hearts.
• Toroidal Cores & Miniature Cores:Used in CTs (Current Transformers) and instruments—high precision, low noise, and absolutely essential for efficiency.
• Stacked & Assembled Cores:For larger transformers—these bad boys hold everything together.
• Core Coil Assemblies:The final assembled part that goes straight into big transformers and generators.

Their business runs on B2B steroids—clients includeVoltamp Transformers, Electrotherm India, Atlas Transformers, and Shilchar Technologies.If you know transformer manufacturing, these names are practically the Avengers of the sector.

Geographically, 99% of revenue comes from India—because when your domestic grid is as chaotic as a Mumbai junction, you don’t need to look abroad. Exports (1%) do trickle in fromEurope, the Gulf, and Canada, but it’s the home market that pays the bills.

And the next act?Radiators and Nanocrystalline Cores.Radiators cool transformers (and hopefully investor tempers), while nanocrystalline cores make transformers more energy efficient. Both are high-margin and could make Vilas Transcore the “Intel inside” of India’s power equipment.

4. Financials Overview